NAIROBI, Kenya — President William Ruto has ordered a crackdown on foreign nationals engaged in hawking and other small-scale retail activities in Kenya, saying the government will move to protect local traders from what he described as unfair competition.
Ruto spoke on Wednesday, September 2, after meeting Micro, Small and Medium Enterprises (MSME) traders at State House in Nairobi, where concerns were raised over foreigners allegedly entering informal retail businesses and competing directly with Kenyan hawkers and small-scale traders.
The President said legislation currently before Parliament seeks to restrict foreign nationals from engaging in certain categories of trading activities and urged traders to participate in discussions around the proposed law before it is passed.
“We have a Bill in Parliament that there are some trading activities that foreigners can’t do in Kenya. By law, nataka mketi chini na wafanyibiashara waangalie kwa sababu hatujapitisha so that we seal all the loopholes so that mtu asitoke China kuja kuwa hawker,” Ruto said.
The President said the government would also use administrative measures to address the issue while Parliament considers the proposed legislation.
He indicated that enforcement could begin as early as next week.
“As we wait for the law to go on, administratively, from next week, Lee (Kinyanjui) akirudi kutoka Addis. Hawa wachuuzi ambao wanafanya biashara ndogo ndogo wafunge na wasipofunga…” Ruto said.
The remarks point to an immediate administrative intervention targeting foreign nationals engaged in small-scale trading, even before the proposed legal restrictions are enacted.
Ruto distinguishes investors from small-scale traders
Ruto also sought to distinguish Kenya’s efforts to attract foreign investment from the presence of foreign nationals operating small retail businesses.
He said the government’s investment policies were designed to attract investors capable of bringing capital, creating jobs and supporting economic growth, rather than enabling foreigners to relocate to Kenya to compete with local hawkers.
“Hatujajenga investor confidence ndo hawkers wakuje Kenya. Ile tumejenga ni for investors, si traders and hawkers,” Ruto said.
The President’s comments come amid broader government efforts to promote foreign investment while responding to concerns from local businesses over competition in the retail and informal sectors.
The distinction is likely to be central to implementation of any new restrictions, particularly in determining which categories of foreign business activity would qualify as investment and which would be treated as small-scale retail or hawking.
Ichung’wah told to establish investor permit rules
Ruto also directed National Assembly Majority Leader and Kikuyu MP Kimani Ichung’wah to engage the Immigration Principal Secretary and establish the conditions under which foreign investors and traders are issued permits to operate in Kenya.
“Kimani Ichung’wah, call the Immigration PS, I want to know the investor permit,” Ruto said.
The directive is expected to bring greater scrutiny to the permits issued to foreign nationals conducting business in the country.
The government will have to determine whether existing immigration and business licensing requirements are being complied with and whether loopholes allow foreign nationals to undertake activities reserved or intended for Kenyan citizens.
Proposed law targets trading activities
The President’s intervention comes as Parliament considers legislation intended to define trading activities that foreign nationals would not be permitted to undertake.
Ruto urged MSME representatives and other stakeholders to engage with the Bill before it becomes law, saying their participation could help identify and close loopholes.
The proposed restrictions would represent a significant policy intervention in Kenya’s informal and small-business economy, where hawking and small-scale retail provide livelihoods for millions of people.
Any enforcement measures will also have to be implemented within existing immigration, labour, business and constitutional frameworks governing the rights and obligations of foreign nationals operating in Kenya.
Local traders raise competition concerns
Kenyan small-scale traders have increasingly raised concerns about competition from foreign nationals operating in sections of the retail and informal economy.
The concerns cited by traders include foreigners allegedly selling products such as duvets and other merchandise through small-scale hawking networks, putting them in direct competition with local traders.
Ruto said the government would respond to those concerns by tightening both the legal and administrative framework governing foreign participation in small-scale trade.
The President’s directive therefore combines an immediate administrative approach with a longer-term legislative one: government agencies are expected to address the issue while Parliament works on the proposed restrictions.
